Inland Marine Insurance - Does Your Business Need It?

Inland Marine insurance began in the 1700s. Back then, the insurance was for ocean voyages carrying cargo. Now, Inland Marine insurance has morphed into a common rider to business insurance. What Does Inland Marine Insurance Cover? Today, Inland Marine insurance protects businesses from many of the risks related to moving assets around the United States. Coverage is commonly used to protect:

• Heavy equipment

• Equipment dealers – movement of expensive demo equipment from trade show to trade show

• Cargo – merchandise of all kinds moving around the country to recipients

What Risks Does Inland Insurance Protect Against? In the world of insurance, a risk is the potential for financial loss. It often contains the following elements:

• The cargo or item(s) covered

• The peril causing the loss

• The financial impact of the potential loss

It is important to note that there are two types of inland marine insurance. Which you choose is important. The first kind of inland marine insurance is all-risk insurance. This type of insurance lists the things not covered by the policy. Typically, carriers won't insure events such as acts of war and acts of nature. There are other exceptions for each industry. Your insurance advisor can inform you of the specific risks for your business if you choose this type of coverage. So, if your firm has a loss from a risk that is not specifically excluded from your Marine Insurance policy you have coverage for your loss. The second kind of Inland Marine insurance is the general opposite of all-risk Inland Marine insurance. The insurance industry refers to this kind of policy as a named perils policy. This kind of policy only protects your company from perils enumerated in the policy. When you buy this kind of policy your firm must prove that any loss incurred is from a risk named in the policy. Covered risks may include:

• Imports and exports

• Items shipped domestically

• Business-owned property including heavy earth moving equipment, office equipment, and job site supplies

An example of a high-risk property that Inland Marine insurance covers are a contractor’s or tradesman’s tools. These may not have coverage by a standard business insurance policy. Inland Marine insurance usually also covers damage to equipment and infrastructure during transport of covered materials. If your company truck strikes an overpass, you may have insurance to repair the truck and the overpass. When you decide to get business insurance, talk to one of our agents. We can help you decide if inland marine insurance should be part of your coverage.